Bangkok: Supajee Suthamphan, the Deputy Prime Minister and Minister of Commerce, announced efforts to push forward a pilot project aimed at enhancing agricultural processing by connecting foreign investment with Thai raw materials. Supajee emphasized the challenges Thailand faces, including climate change impacts, exacerbated by the El Ni±o phenomenon affecting temperatures and agricultural yields. Increased transportation costs, shipping fees, and longer transit times are adding pressure on Thai businesses throughout the supply chain.
According to Thai News Agency, the Thai government is promoting this pilot project to leverage significant potential in the agricultural processing sector. The goal is to link foreign investment with Thai agricultural raw materials, increase the value of agricultural products, generate income for farmers, and integrate Thai entrepreneurs more deeply into global supply chains. This strategy aligns with discussions with the Chinese government during the APEC Trade Ministers' Meeting, highlighting China's approach of promoting investment through the integration of domestic raw materials and long-term production bases.
The government's approach includes increasing the proportion of domestically produced raw materials, components, and services, ensuring foreign investment benefits the Thai economy. Efforts focus on connecting Thai businesses throughout the supply chain, reducing import dependence, minimizing transshipment issues, and enhancing supply chain transparency.
Thailand's economy is projected to grow by 2.8% in the first quarter of 2026, continuing the 2.5% growth trend from the fourth quarter of 2025. Investment growth exceeding 10% and strong export performance are key drivers. However, the benefits of growth are not evenly distributed, with large-scale industries like AI technology expanding while SMEs recover slowly. Export growth reached 17.6% in the first quarter of 2026, peaking at 23% in April, driven mostly by large businesses.
Ms. Supajee emphasized the Ministry of Commerce's focus on upgrading SMEs through skill development, competitiveness enhancement, and market expansion. The "Thai Helps Thai Plus" project and upgrading product standards to meet global demands are prioritized. Collaboration with the Ministry of Finance aims to facilitate funding access through loan approvals and the use of intellectual property as a financial tool.
International trade platforms like THAIFEX are key mechanisms to connect Thai SMEs with global buyers, investors, and trading partners, expanding markets and business opportunities. Geopolitical and geoeconomic considerations necessitate balanced trade policies with key partners like the United States and China.
European investors are urging Thailand to expedite negotiations on the Thailand-EU Free Trade Agreement to enhance trade and investment opportunities. Progress has been made on 11 chapters, with efforts to accelerate remaining negotiations.
Ms. Supajee reiterated that addressing modern challenges requires cooperation under the "Team Thailand" concept to attract investment, enhance competitiveness, and create growth benefiting farmers, entrepreneurs, and the Thai populace. "The world has changed, and Thailand must adapt to keep pace with the present," she stated.